Thor Industries Inc. announces that it has paid off the outstanding balance on its revolving credit facility. According to a news release, the $500M facility remains available for future borrowings by the company through the facility maturity date of June 30, 2021.
Thor also disclosed that its board of directors authorized the repurchase of up to $250M worth of shares over the next two years on the open market or in privately negotiated transactions. The authorization is in effect until June 19, 2020. The company noted that the newly repurchase authorization does not obligate Thor to repurchase any dollar amount or number of shares of common stock.
“The Jayco acquisition has been a great success, delivering significant accretive value to our organization and shareholders,” said Bob Martin, Thor president and CEO. “Our execution, combined with strong earnings and cash flows following the acquisition, allowed us to pay off the debt in just two years. Further, the RV industry continues to benefit from solid economic fundamentals, as well as favorable demographic trends and lifestyle changes that are contributing to this growing marketplace. These positive factors support our belief that new consumers will continue to embrace the RV way of life and provide a pathway to continued long-term growth.
“Given the elimination of our debt, our healthy balance sheet, debt availability and historically strong cash flow, we now plan to embark on the next phase of our capital allocation strategy. We will remain primarily focused on driving organic growth in our current businesses through investments in prudent capacity additions, technology and product innovation. We also intend to continue to seek and fund selective, opportunistic and accretive global growth opportunities.”